News

From Dollar to Euro

Posted on
August 30, 2010 11:41

Per September 1st the Euro will become the lead currency instead of the US Dollar. There are a couple of reasons for that. The main one is that SellaBand GmbH is forced by bookkeeping regulations to charge its customers in Euros and not in Dollars. On top of that 80% of the users are coming from the Euro zone. And with every project realized there have been costs in Euro. These two result in a big currency risk for SellaBand as a company. Going to just the Euro, makes the financial administration of SellaBand and the escrow more efficient and transparent and limits the currency risk. During the payment process we will show what the price of a part is in dollars based on the daily euro/dollar rate. The new main part price is going to be €10 instead of $10 and all new budgets will appear in Euro. All existing Parts and budgets will be converted into Euro based on the exchange rate of September 1st.

Comments

Posted: September 01, 2010 22:39

I've just posted a support question, as the conversion from $ to € caused that the part price doesn't add up to the total target. It's now set at 10300 in my case, whereas to end up with a full 100% it should either be 10244 (original 1300 parts) or 10441 (1325 parts). I'm sure I'm not the only one who won't be able to hit target because we need to sell parts of parts :)

Posted: August 31, 2010 16:45

@Paul McMaster: Not sure what you mean. All Parts of the currently fundraising projects will be transfered into Euro by a fixed exchange rate. So there´s no need to switch now right away since all the "old" parts will be the same. Only parts from new projects that are started tomorrow will have a part price of 10€.

Posted: August 31, 2010 16:14

@Wyando:
15% will always be 15%. the the money doesn´t get more if it´s converted into euro.

"if you have a 10$ part in an artist and you decide to move this part to a new artist (for whatever reason), it won't be possible, as the value of that part will be 8Eur..."

The parts of the running projects will be converted to Euro by a fixed exchange rate of today. By this, if you decide to switch a part from one artist to another (already fundraising project before te 1st of september), the part price will be the same. However for all projects that start after the 1st of september the part price will be 10€.

"BTW: if everything will be in EUR, will this lower the fees as there are no costs for FX anymore?"

Changing the currency doesn´t mean that there aren´t any costs no more. But as you might have noticed have these fees already been lowered / incremented depending on the amount of parts you want to aquire by steps of 10% 7,5% and 5%.

Posted: August 31, 2010 16:13

If all existing parts/budgets are going to be converted to Euros, I fail to see the relevance of showing a dollar/euro conversion rate during the payment process. (a local currency/euro conversion rate would make more sense, considering there are believers like me who are neither in the dollar nor euro zones)

Surely we are only talking about a one-time conversion here, where the part price will translate into something other than 10EUR for those existing projects?